Greenergy is temporarily ceasing production at its biodiesel plant at Immingham, less than a year after biodiesel producer Argent Energy closed its plant in Motherwell, marking an ongoing crisis in the biodiesel supply market
The move comes ahead of a strategic review to evaluate the plant’s commercial viability “amid the significant challenges currently facing the UK biofuels industry”.
Greenergy is one of the UK’s largest suppliers of transport fuel, added that they are working closely with all staff at the site who will remain employed throughout the review period.
Last year Argent Energy ended production at its biodiesel plant in Motherwell, Scotland, citing “unprecedented competition” from imported Chinese state-subsidised biodiesel, as a key factor.
Another was the removal of trade defence measures by the UK after Brexit on renewable diesel from the USA, that competes with UK biodiesel, which has resulted in an increase of imports of subsidised US-made product of nearly half a million tonnes.
Responding to Greenergy’s decision, Gaynor Hartnell, chief executive of the Renewable Transport Fuel Association (RFA), said: “Urgent action is needed across government if we are to retain domestic renewable fuel manufacture and not be entirely reliant on imports.
“There’s been a catalogue of damaging decisions over recent years, all of which were preventable and can be remedied, but time is running out.
“This comes at a bad time when government is setting out its stall as a green energy superpower and aiming to encourage new renewable fuel production for aviation.”
The RFA pointed to a number of key reasons why the sector is struggling. These include allowing renewable fuels to enter the UK tariff free, an influx of subsidised and dumped biofuels from China and a surge of subsidised and dumped HVO from the US.
